Within the first half of our fiscal 12 months, we have been proud to have overcome these challenges, stayed dedicated to North Star investments, and nonetheless stay worthwhile. It was an unbelievable accomplishment to do all of it. As we take a look at the second half, we assume that these margin challenges, whereas non permanent, would possible persist for the rest of our fiscal 12 months. This led us to an vital determination level.
Will we select to stay worthwhile by pausing or decreasing our North Star technique investments? Or can we capitalize on our progress and proceed to speculate with confidence utilizing our steadiness sheet? Confronted with this alternative, our board and administration group have made the strategic determination to not solely keep dedicated to North Star however to speed up our funding within the second half of the 12 months. We’re selecting progress towards our long-term objectives over short-term revenue maximization. Particularly, we’re rising our second half forecasted opex spend by 12 to $14 million in JRNY versus LY, and advertising and marketing as a proportion of gross sales will improve by 9 to 11 factors versus final 12 months. This may allow us to develop — to extra rapidly develop our membership base and transition to a better gross margin enterprise sooner than initially specified by our Investor Day.
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